There are occasions in the property selling business when a seller will fail to understand the full implications of signing a sole mandate with an estate agent, which can lead to unfortunate consequences.
Don't get caught having to pay commission in a post-mandate property deal.
This is according to Lanice Steward, MD of Anne Porter Knight Frank, who says it can happen that after the sole mandate period has expired the seller will do a deal on his own with a buyer or work with another agent.
“However, if the buyer was originally introduced to the seller by the agent or if any deal is done within 10 days of the mandate expiring, the original agent is still entitled to full commission.”
This basic estate agent’s right, says Steward, has in the last decade several times been upheld by the courts.
Steward’s advice to anyone selling a property on which the sole mandate is about to expire is to get from the agent a full list of all the clients with whom he or she has been in touch regarding the property in question.
“Potential buyers sometimes of their own accord visit a seller and enter into negotiations without revealing that they learned of the sale through the agent.
“Alternatively, the seller can be under the impression that once the sole mandate period has expired he is free to deal with whoever he likes without having to pay commission.
“Sellers have time and again found themselves having to pay two commissions – so make sure you understand the implications of post-mandate deals,” says Steward.
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